Oil prices declined in early Asian trading on Monday, reversing last week’s gains, after Russia resumed loadings at its major Black Sea export hub, Novorossiysk, following a two-day suspension caused by a Ukrainian attack.
Brent crude futures fell 58 cents, or 0.9%, to $63.81 a barrel at 0050 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 59 cents, or 1.0%, to $59.50 a barrel.
Both benchmarks had climbed more than 2% on Friday, ending the week slightly higher after exports were halted at Novorossiysk and a nearby Caspian Pipeline Consortium terminal — an interruption equivalent to about 2% of global supply.
Oil loadings restarted on Sunday, according to two industry sources and LSEG data. Still, Ukraine’s intensified attacks on Russian energy facilities continue to raise concerns about future supply disruptions.
Over the weekend, Ukraine said it struck Russia’s Ryazan oil refinery, while its General Staff claimed another hit on the Novokuibyshevsk refinery in the Samara region.
Toshitaka Tazawa of Fujitomi Securities noted that investors are weighing the long-term impact of these attacks on Russian crude exports while also taking profits after Friday’s rally. He added that perceptions of oversupply remain, driven by OPEC+ production increases, and expects WTI to hover near $60 within a $5 trading range.
Investors are also watching the effects of Western sanctions. The U.S. recently banned transactions with Russian oil giants Lukoil and Rosneft after November 21, aiming to pressure Moscow into Ukraine peace talks. President Donald Trump said Sunday that Republicans are preparing legislation to sanction any country doing business with Russia, adding that Iran may be included.
Earlier this month, OPEC+ confirmed a 137,000-barrel-per-day increase in December output — the same as in October and November — and announced a pause in further increases for the first quarter of next year.
Meanwhile, U.S. drilling activity picked up, with the oil rig count rising by three to 417 in the week ending November 14, according to Baker Hughes.
